Northern Natural Gas Company

Fifth Revised Volume No. 1

Effective Date: 11/01/1993, Docket: RS92- 8-004, Status: Effective

Original Sheet No. 277 Original Sheet No. 277 : Effective

GENERAL TERMS AND CONDITIONS

42. HARDSHIP REDUCTIONS

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In conjunction with other reduction rights permitted under the terms

of this Tariff, TF purchasers (TF or TFX) shall be entitled to reduce

their level of firm entitlements for relief from hardship under the

following terms:

a) In the event 1) that a firm industrial customer, including

firm crop and grain drying customers of a TF Shipper that is

being served with gas exclusively transported and delivered

to TF Shipper by Northern on a firm basis, ceases receiving

transported gas through TF Shipper and commences receiving

gas directly from Northern, or from a party other than

Northern where Northern sells the gas to or transports and

delivers the gas to such other party for redelivery to such

firm industrial customer on a firm basis, or 2) in the

event the operations of the firm industrial customer are

discontinued, then TF Shipper may reduce the Firm

Entitlement of the Service Agreements, but only up to the

amount of the contract quantity purchased by the firm

industrial customer, provided that the TF Shipper and the

firm industrial customer (if different from the TF Shipper)

is not physically connected with, or is not being served and

has not been served by, another pipeline, and provided

further that the total annual reduction quantity under this

or any other provision of this Tariff shall be limited on an

annual basis to the greater of this hardship reduction or

ten percent (10%) of the total aggregate MDQ of the TF

Shipper's TF agreement.

The term "discontinued" as used in this section refers to

the termination of operations of a firm industrial customer

and the cessation of gas consuming operations by the firm

industrial customer that is not a seasonal or temporary

cessation. The determination of cessation of gas consuming

operations shall be made based on verifiable information

made available by the TF or TFX Shipper at the time of the

hardship request.